Japan nonlife insurers to report on inappropriate business practices

The four were tied cartel allegations earlier this year

Japan nonlife insurers to report on inappropriate business practices

Insurance News

By Kenneth Araullo

Japan's four major casualty insurers have identified inappropriate business conduct involving over 100 corporate clients during internal investigations related to alleged price fixing.

The insurers in question — Tokio Marine & Nichido Fire, Sompo Japan, Mitsui, and Aioi Nissay Dowa — will submit their findings to the Financial Services Agency (FSA) by the end of the week, according to a Reuters report from Nikkei. Sources for this information were not disclosed.

Prompted by allegations of collusion on premiums for certain corporate clients, the FSA had instructed these insurers to scrutinize their business practices. Besides allegations of cartel activities that involved several major contracted companies, Sompo Japan is also currently in hot water over its relationship with Bigmotor, a used car dealer that is also being investigated by the FSA over fraud allegations.

The original Nikkei report also noted that the agency is contemplating potential administrative penalties if the insurers are determined to have breached industry regulations aimed at ensuring fairness and safeguarding customer interests.

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